We thought we’d take this opportunity to talk about Collective 2. Since MCR’s Forte inception in February 2018, Collective 2 has served as a solid vehicle for us to deliver our trading strategy to you, the investor. For those who are not familiar with Collective 2, allow us to provide a brief overview.
Collective 2 (aka “C2”), founded in 2001 by Yale University grad and entrepreneur, Matthew Klein, is a website that offers investors the opportunity to subscribe to a variety of different trading strategies offered by developers. C2 can be considered a disruptive innovator in that it effectively takes the creativity, flexibility, and (sometimes) outsized returns that “qualified” or “accredited” investors in hedge funds benefit from (hedge fund investors must have a net worth above $1M excluding primary residence or annual income above $200K for the last two years…$300K combined if married) and offers it to everyone. That said, C2 has the potential to significantly advance and modernize the world of investing as we know it. On C2’s home page, it states “Collective2 is like a hedge fund…Except: (1) You never pay a % of assets under management. (2) You never pay a % of trading profits. (3) Your money is never ‘locked up.’ Did we say we were ‘like a hedge fund’? Never mind.” They’re right. Through C2’s unique subscription model, the investor pays only a monthly subscription fee (which varies between strategies) and does not have to turn their money over to a fund or asset manager making C2 even better than a hedge fund.
So for the average retail investor, C2 is a game-changer. Not to discredit the honest and well-intentioned financial advisor community, those investors who aren’t qualified to invest in hedge funds have access to more investment options with C2 beyond the traditional “buy-and-hold” index and mutual fund route that investment advisors commonly tout as the only way to wealth.
As of today (8/18/2019), C2 hosts a total of 604 individual trading strategies…and MCR is proud to announce that Forte is in the TOP THREE PERFORMING STRATEGIES (when filtering by Strategy Age > 558 days, Profit Factor >= 1.1, Annual Return > 13%, and Max Drawdown <= 13%):